Internet infrastructure's contribution to India's GDP rising
Internet infrastructure in India might still be rudimentary, but it
still is emerging as a significant contributor to the country's gross
domestic product (GDP).
Internet infrastructure in India might still be rudimentary, but it still is emerging as a significant contributor to the country's gross domestic product (GDP).
In 2009 (the year for which the study was conducted), the Internet accounted for 3.2% of the country's GDP. It contributed 5% of the GDP in five years ended 2009, according to a study by global consultant McKinsey and Co. Compare this with the fact that agriculture contributed around 14% to the country's GDP in 2010-11, according to the Economic Survey.
The study included 13 countries-Group of Eight (the US, the UK, France, Germany, Italy, Japan, Russia and Canada), India, Brazil, China, South Korea and Sweden. On average, the Internet contributed 3.4% to GDP in the 13 countries. Sweden, which has a strong Internet infrastructure, had 6.3% of its total GDP from the Internet. Russia had the lowest share (0.8%) of Internet in its GDP.
India and China are strengthening their position in the global Internet ecosystem rapidly with growth rate of more than 20%. Though the US dominates the Internet, it is British who spend the most on the Internet. In 2009, online shoppers in the UK spent around $2,500 on an average, compared with $814 spent by US shoppers. French shoppers spent $555 on an average during 2009.
The Internet's contribution to India's GDP is primarily driven by export instead of local consumption. In other countries, private consumption accounted for half or more of the contribution, around 70% in South Korea.
In 2009 (the year for which the study was conducted), the Internet accounted for 3.2% of the country's GDP. It contributed 5% of the GDP in five years ended 2009, according to a study by global consultant McKinsey and Co. Compare this with the fact that agriculture contributed around 14% to the country's GDP in 2010-11, according to the Economic Survey.
The study included 13 countries-Group of Eight (the US, the UK, France, Germany, Italy, Japan, Russia and Canada), India, Brazil, China, South Korea and Sweden. On average, the Internet contributed 3.4% to GDP in the 13 countries. Sweden, which has a strong Internet infrastructure, had 6.3% of its total GDP from the Internet. Russia had the lowest share (0.8%) of Internet in its GDP.
The Internet's contribution to India's GDP is primarily driven by export instead of local consumption. In other countries, private consumption accounted for half or more of the contribution, around 70% in South Korea.
